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Domestic Coalition Requests New AD/CV Duties on Laminated Woven Sacks From Vietnam

A coalition of domestic manufacturers filed a petition on Jan. 25 with the Commerce Department and the International Trade Commission, requesting new antidumping and countervailing duties on laminated woven sacks from Vietnam. Commerce will now decide whether to begin AD/CVD investigations on laminated woven sacks that could eventually result in the assessment of AD/CV duties. The group filing the petition is known as the Laminated Woven Sacks Fair Trade Coalition.

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Imports of laminated woven sacks from Vietnam are “rapidly increasing,” the petition said, with Vietnamese producers expanding capacity “well beyond any forecasted increase in domestic demand,” the petition said. Chinese laminated woven sack producers are also setting up production in Vietnam to avoid AD/CV duties in place since 2008 on laminated woven sacks from China.

Proposed Scope

The petition proposes the following scope for the investigations, which is similar to the scope of the existing AD/CV duties on laminated woven sacks from China, though there are some differences:

Laminated woven sacks are bags consisting of one or more plies of fabric consisting of woven polypropylene strip and/or woven polyethylene strip, regardless of the width of the strip; with or without an extrusion coating of polypropylene and/or polyethylene on one or both sides of the fabric; laminated by any method either to an exterior ply of plastic film such as biaxially-oriented polypropylene (“BOPP”) or to an exterior ply of paper that is suitable for high-quality print graphics (i.e., it has an ISO brightness of 82 or higher and a Sheffield Smoothness of 250 or less); printed; displaying, containing, or comprising three or more colors, regardless of the type of printing process used; with or without lining; whether finished or unfinished; whether or not closed on one end; whether or not in roll form (including, but not limited to, sheets, lay-flat tubing, and sleeves); with or without handles; with or without special closing features; not exceeding one kilogram in weight. Laminated woven sacks subject to the scope are typically used for retail packaging of consumer goods such as pet foods and bird seed. Laminated woven sacks produced in Vietnam are subject to the scope regardless of the country of origin of the fabric used to make the sack.

Effective July 1, 2014, subject laminated woven sacks are classifiable under Harmonized Tariff Schedule of the United States (“HTSUS”) subheading 6305.33.0040. If entered with plastic coating on both sides of the fabric consisting of woven polypropylene strip and/or woven polyethylene strip, laminated woven sacks may be classifiable under HTSUS subheadings 3923.21.0080, 3923.21.0095 and 3923.29.0000. If entered not closed on one end or in roll form (including sheets, lay-flat tubing, and sleeves), laminated woven sacks may be classifiable under other HTSUS subheadings, including 3917.39.0050, 3921.90.1100, 3921.90.1500 and 5903.90.2500. If the polypropylene strips and/or polyethylene strips making up the fabric measure more than 5 millimeters in width, laminated woven sacks may be classifiable under other HTSUS subheadings, including 4601.99.0500, 4601.99.9000 and 4602.90.0000. Although HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope is dispositive.

Commerce Accepting Comments on Petition Support

The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations. Comments are due by March 27.

Email ITTNews@warren-news.com for a copy of the petition.